More research I found this; fidelity.com/tax-information/tax-topics/qualified dividends. This explains the "Qualified" tax treatment of these type dividends as capital gains. You need to be careful with turbo tax because I know I didn't check the box "it was purchased after Dec 31, 2011 but I saw it on my AZ state and had to go back into Federal and un check the box and amend my tax return which I had already emailed. Good luck!
